H&R Block Inc. on Tuesday announced that it will change its refund-anticipation loan program to make sure customers fully understand it and realize their debts could affect their loan. The changes to the program, in which H&R Block lends customers the money they expect to receive from a tax refund, comes two months after a federal judge approved a $39 million settlement in a long-running class-action lawsuit against the tax-preparation company by customers who claimed they paid too much for the loans.
H&R Block said it will show customers a chart outlining their options for filing a tax return, fees and the time it takes to get a refund. It said the practice would address some concerns from critics who say the loans take advantage of financially unsophisticated taxpayers who aren’t adequately told about the high fees. H&R Block Inc and HSBC Finance Corporation, formerly Household International, partner together. HSBC Finance claims to have invented the highly criticized refund-anticipation loan program.